Its tickets for 1time - but not for passengers

Embattled budget airline 1time on Friday filed for liquidation and immediately grounded all its flights.

Last month‚ 1time Holdings reported a larger-than-expected loss for the six months to June 30 after higher fuel costs‚ airport taxes and an excess of capacity in the market took a toll on its operations.

It reported a loss of R43.5m for the period‚ compared with a loss of R33.9m for the same period a year earlier‚ it said.

Earlier in October‚ the JSE informed investors the airline had not published its financial statements within the required three-month window following the end of its interim financial period. The JSE then gave 1time until the end of October to publish its interim accounts for the half-year to June.

In August‚ the company was forced to seek protection from its creditors after six months of negotiations with its creditors failed to bring any resolution over how it would repay about R400m in debts.

Last week‚ 1time posted a proposed rescue plan that outlined some actions required to slow the airline's decline and to ensure creditors got some of the money owed to them.

The business rescue process failed.

On Friday, Blacky Komani said that there was no viable way forward for 1time.

"Although filing and operating under business rescue since 17 September 2012‚ the appointed practitioner has expressed that he believes there is no viable way forward in terms of recapitalising the airline to a profitable state."

"It is therefore with the utmost regret‚ disappointment and heartfelt disbelief that we have to file for liquidation‚ which means the end of a dream and an era for all of us‚" said Komani in the company's statement.

SOURCE

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